Sealed Air Corporation SEE has reported fourth-quarter 2024 adjusted earnings per share of 75 cents, which surpassed the Zacks Consensus Estimate of 67 cents. The bottom line fell 14.8% year over year due to increased adjusted tax expenses, partially negated by lower interest expenses.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Sealed Air Corporation Price, Consensus and EPS Surprise
Sealed Air Corporation price-consensus-eps-surprise-chart | Sealed Air Corporation Quote
Sealed Air’s Q4 Sales Dip Y/Y
Total sales were $1.37 billion in the reported quarter, which beat the Zacks Consensus Estimate of $1.36 billion. The figure edged down 0.3% from $1.38 billion in the fourth quarter of 2023. Pricing had unfavorable impacts of 1%. Meanwhile, volumes inched up 1% year over year.
Our model predicted pricing to impact sales by 2.5%. We expected volumes to move up 1.4% year over year.
Sales in the APAC (in constant dollars) rose 0.2% year over year to $210 million. Sales in the Americas witnessed a decline of 0.8% to $875.5 million and sales in EMEA rose 0.7% to $287.5 million.
SEE’s Q4 Gross Margin Grows Y/Y
The cost of sales dipped 0.7% year over year to $966 million. The gross profit was $407 million, which marked a 0.5% increase from the year-ago quarter’s $405 million. The gross margin rose to 29.6% from the year-ago quarter’s 29.4%.
SG&A expenses were $189 million, hiking 7% from $177 million in the year-ago quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were around $271 million in the quarter, which decreased 1.3% from the year-ago period, mainly dragged down by lower Protective segment volumes. The adjusted EBITDA margin was 19.7% compared with the year-ago quarter’s 19.9%.
Sealed Air’s Q4 Segmental Performances
Food: Net sales increased 3.3% year over year to $922.5 million. The figure surpassed our estimate of $912 million.
Pricing actions had a favorable impact of 0.2%, while volumes grew 4.9%, reflecting strong end-market demand and competitive share gains. Foreign currency had an unfavorable impact of 1.8%. We expected volume growth of 4.8% and a pricing decline of 2.1%.
Adjusted EBITDA was around $208 million, up 7% from the last-year quarter, aided by higher volumes. The reported figure surpassed our estimate of $196 million.
Protective: The segment recorded net sales of $450 million in the quarter under review, down 7.1% from the year-ago quarter. We expected net sales of $445 million.
Currency had an unfavorable impact of 0.5%. Pricing had a negative effect of 1.2%, whereas volumes fell 5.4% due to continued market pressures in the industrial and fulfillment sectors.
Our model predicted currency to negatively impact by 0.1% and price to impact by 3.2%. We expected volume to fall 5% in the quarter.
The segment’s adjusted EBITDA decreased 26% year over year to $67 million, driven by lower volumes and unfavorable net price realization. We expected adjusted EBITDA to be $75 million.
SEE’s Cash Flow & Balance Sheet
Cash flow generated from operating activities was around $728 million in 2024, higher than $516 million in the prior year. The company paid out cash dividends of $118 million in 2024.
As of Dec. 31, 2024, Sealed Air’s total debt was $4.40 billion, down from $4.69 billion as of Dec. 31, 2023. As of the end of 2024, the company had $1.37 billion of liquidity available, which comprised $372 million in cash and $1 billion of undrawn, committed credit facilities.
Sealed Air’s 2024 Results
SEE’s adjusted earnings per share of $3.14 in 2023 moved down 1.3% year over year but surpassed the Zacks Consensus Estimate of $3.05. Including special items, the company delivered net earnings per share of $1.84 in 2024 compared with $2.34 in 2023.
Total sales edged down 1.8% year over year to $5.39 billion in 2024. The top line beat the Zacks Consensus Estimate of $5.38 billion.
SEE’s 2025 Guidance
Sealed Air expects net sales of $5.1-$5.5 billion and an adjusted EBITDA of $1.075-$1.175 billion for 2025. Adjusted earnings per share are forecast to be $2.90-$3.30.
The free cash flow for the year is expected to be $350-$450 million.
Sealed Air’s Share Price Performance
In the past year, the company’s shares have lost 8.9% against the industry’s 12.3% growth.
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SEE’s Zacks Rank
Sealed Air currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Sealed Air’s Industry Peers Fare in Q4?
AptarGroup, Inc. ATR reported fourth-quarter 2024 adjusted earnings per share of $1.52, which beat the Zacks Consensus Estimate of $1.26. The bottom line increased 27% year over year from $1.20 per share (including comparable exchange rates). The company expected fourth-quarter 2024 adjusted earnings per share to be $1.22-$1.30.
ATR’s total sales increased 1.1% year over year to $848 million. However, the reported figure missed the Zacks Consensus Estimate of $858 million.
Packaging Corporation of America PKG posted adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year. The upside was driven by higher prices and mix, improved volume in both segments, and lower freight and logistics expenses. However, these gains were somewhat offset by an increase in operating expenses, scheduled maintenance outage expenses, depreciation expenses and other expenses.
Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the Zacks Consensus Estimate of $2.13 billion.
Amcor Plc AMCR reported second-quarter fiscal 2025 (ended Dec. 31, 2024) adjusted earnings per share of 16 cents, which met the Zacks Consensus Estimate. The company reported earnings of around 16 cents per share in the year-ago quarter. Gains from improved volumes, continued strong cost performance and benefits from restructuring initiatives were offset by unfavorable impacts of price/mix.
Amcor’s sales dipped 0.3% year over year to $3.24 billion. The downside was due to a 1% unfavorable impact of foreign exchange and a 1% effect of pass-through of lower raw material costs. The volume rose 2.3% from the year-ago quarter. The price/mix had an unfavorable impact of approximately 2% due to lower volumes in high-value healthcare categories. The top line missed the Zacks Consensus Estimate of $3.44 billion.
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